Many millennials are overloaded with student loans, credit card debt, and a serious lack of savings – both emergency and retirement. Living at home may provide some much desired financial stability, just when it’s needed most. One-third of millennials are now living with their parents.
If you’re considering living with your parents, here are some steps you can take towards financial independence:
- Make friends with a budget, make it your own. Pay attention to what goes in and what comes out. Don’t mark spending as just cash, but rather classify items by category. You’ll be able to identify spending habits that you can adjust and thereby grow your savings more quickly.
- Review your student loans. Work with your lender to make sure you can afford what you are paying. There may be other options or adjustments they can make.
- Work on paying off credit card debt. Experts suggest paying off the card with the highest interest rate first. Then move to the next card. While you’re paying these off, stop using credit to pay for things.
- Consider biweekly payments on your credit cards and your student loan. This adds up to an extra payment and additional savings on the overall interest you’ll pay.
- If you are not paying rent to your parents, consider putting that money towards a security deposit for an apartment of your own. If it’s easier, give the money to your parents to put away for you. You should also set up an emergency fund to handle unexpected events.
- Don’t forget to set up a 401(k) account and take advantage of any matches offered by your employer. Retirement saving is not something you want to put off.
- Check your credit. Recent reports indicate that millennials are less likely to access the free credit reports. There are three reporting agencies and you’re allowed a free report from each one. Spread out your request so you can monitor your credit over time. Get a better understanding of credit scores and having a healthy one. Try this Credit Score Quiz to see how knowledgeable you are now.
If you have any questions or need a free financial review, please call Marquette Bank’s Customer Service Center at 1-888-254-9500.